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Noventis Corporation prepared the following estimates for the four quarters of the current year: First Quarter Second Quarter Third Quarter Fourth Quarter Sales $ 1,275,000

Noventis Corporation prepared the following estimates for the four quarters of the current year:

First Quarter Second Quarter Third Quarter Fourth Quarter
Sales $ 1,275,000 $ 1,530,000 $ 1,785,000 $ 2,040,000
Cost of goods sold 434,000 514,000 584,000 634,000
Administrative costs 500,000 280,000 285,000 295,000
Advertising costs 0 140,000 0 0
Executive bonuses 0 0 0 104,000
Provision for bad debts 0 0 0 60,000
Annual maintenance costs 78,000 0 0 0

Additional Information

First-quarter administrative costs include the $180,000 annual insurance premium.

Advertising costs paid in the second quarter relate to television advertisements that will be broadcast throughout the entire year.

No special items affect income during the year.
Noventis estimates an effective income tax rate for the year of 40 percent.

a.

Assuming that actual results donotvary from the estimates provided, determine the amount of net income to be reported each quarter of the current year.

b.

Assume that actual results donotvary from the estimates provided except for that in the third quarter, the estimated annual effective income tax rate is revised downward to 38 percent. Determine the amount of net income to be reported each quarter of the current year.

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